IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT Outlook IMF forecasts point to a recession of 8% of GDP for Portugal and Spain, with a partial and slow recovery over the following years, na- mely in the sectors that depend on flow and circulation of people, as well as airports and shopping centres; At the end of March Ibersol closed around 75% of its restaurants, res- tricting operations during the state of emergency to 127 restaurants in Portugal, limited to delivery and take away services; Against this backdrop and given the impact since mid-March, Ibersol implemented a number of prevention/contingency measures and ac- tivated mechanisms to protect available jobs, so as to minimise the negative impacts for the group and its employees; Later, at the end of April, we opened around 10 restaurants, half of which in Spain, to provide delivery, take away and drive thru. At this point it is too early to predict the behaviour of consumers when restrictions are lifted, or the evolution of business volume, to quantify the magnitude of the impact of this crisis. As always, we will attempt to adjust costs to the evolution of demand to get the most out of our operation, until the GDP begins to return to its recent levels. To strengthen the financial structure, the group took out new loans during the first quarter, to the tune of 30 million euros and is nego- tiating a restructuring of the debt which is due in 2020, as well as additional loans. Five new restaurants were opened in 2020 and the remaining ex- pansion programme will be adjusted to the evolution of the general situation. 115